In 2016, Philip Morris International (PMI) announced that it was committing to a major business transformation — a move away from cigarettes and other combustible tobacco products and toward healthier, smoke-free alternatives to nicotine delivery. The goal by 2025, the company declared, was to get at least 40 million of its adult customers to stop smoking and switch to one of the alternatives, with the goal, ultimately, of achieving a “smoke-free future.”

As an exclusive agent based in South Africa, you will be required to provide input in product launch and marketing .

Answer ALL the questions in this section.
Question 1 (25 Marks)

The risks from smoking tobacco are well documented and according to the (WHO), the tobacco epidemic is one of the biggest public health threats the world has ever faced, killing more than 8 million people a year, including around 1.2 million deaths from exposure to second-hand smoke. Despite this fatality, the marketing of tobacco remains a lucrative business.

Taking the contrasting statements above and additional research into consideration, discuss ways in which Philip Morris can become a socially responsible tobacco marketer.

Question 2 (25 Marks)

Critically discuss the macro-environmental issues that a tobacco marketer such as Philip Morris will contend with.

Question 3 (25 Marks)

Companies must develop an action plan for introducing their new product/s into the market. Philip Morris International (PMI) aims to get at least 40 million of its adult customers to stop smoking and switch to one of the alternatives, with the goal, ultimately, of achieving a “smoke-free future.”

Philip Morris would aim their innovative products at consumers who are early adopters. Advise Philip Morris on how to facilitate new product adoption using the five-stage consumer– adoption process model. (10 Marks)

Consumers will adopt the Philip Morris innovative product differently. For any new product, there will be pioneers and early adopters. The rate of adoption of an innovation is dependent on its inherent characteristics. Discuss why the characteristics of new Philip Morris products will influence its adoption rate. (15 Marks)

Question 4 (25 Marks)

Most marketing-oriented companies allocate the marketing communications budget over the simajor modes of communication advertising, sales promotion, public relations and publicity, events and experiences, sales force, and direct marketing. With advertising of tobacco products suppressed on national television and newspapers, how do you perceive Philip Morris would reach its current and potential new customers to unveil their newly developed products.

Answers to Above Questions on Philip Morris Case Study

Answer 1: Tobacco marketing is really a difficult task as it directly questions the social responsible behaviour of the company. In the given case scenario of Philip Morris International, the company can consider different approaches in order to become a socially responsible tobacco marketer. For example, it can consider transparency in all its marketing and advertising practices so that it can allow consumers to make informed decisions. Another important approach can be to achieve continuous improvement and accountability with respect to all its marketing efforts and their impact on public health outcomes.answer

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